THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION The definitions and interpretations commencing on page 5 of this Circular apply throughout this Circular, including this front cover. Action required • This Circular is important and should be read in its entirety, with particular attention to the section entitled “Action required by Linked Unitholders”, which commences on page 2. • If you are in any doubt as to what action you should take, please consult your CSDP , Broker, banker, attorney, accountant or other professional advisor immediately. • If you have disposed of all of your Linked Units, this Circular should be handed to the purchaser of such Linked Units or to the CSDP , Broker, banker or other agent through whom the disposal was effected. Investec Property Fund does not accept responsibility, and will not be held liable, for any action of, or omission by, any CSDP or Broker including, without limitation, any failure on the part of the CSDP or Broker of any beneficial owner of Linked Units to notify such beneficial owner of the details set out in this Circular. (Incorporated in the Republic of South Africa) (Registration number 2008/011366/06) (VAT No: 4110247709) Share code: IPF ISIN: ZAE000155099 (“Investec Property Fund” or “the Fund”) CIRCULAR TO LINKED UNITHOLDERS regarding: • the replacement of each Linked Unit with one Delinked Ordinary Share by the delinking of the Linked Units and the capitalisation of the value of the Debentures in the books of account of Investec Property Fund to form part of the Fund’s stated capital account; • the conversion of Investec Property Fund’s ordinary par value shares to ordinary shares of no par value; and • the approval of the amendment of the Fund’s Memorandum of Incorporation; and incorporating: • a notice convening a General Meeting of Debenture Holders; • a notice convening a General Meeting of Shareholders; • a form of proxy (blue) in respect of the General Meeting of Debenture Holders (for use by Certificated and Own-name Registration Linked Unitholders only); • a form of proxy (green) in respect of the General Meeting of Shareholders (for use by Certificated and Own-name Registration Linked Unitholders only); and • a form of surrender (pink) in respect of the replacement of Certificated Linked Units with Certificated Shares (for use by Certificated Linked Unitholders only). Investment Bank and Sponsor Date of issue: 18 July 2013 Copies of this Circular, in English only, may be obtained from the registered office of the Fund or at the offices of the Transfer Secretaries, during normal business hours on Business Days from 18 July 2013 until 16 August 2013. The respective addresses of the Fund’s registered office and the Transfer Secretaries are set out in the “Corporate Information” section. The Circular will also be available on the Fund’s website (www.investecpropertyfund.com) from 18 July 2013.
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Embed
CIRCULAR TO LINKED UNITHOLDERS...4. Procedure to be followed by Certificated Linked Unitholders in terms of the Conversion 11 5. Procedure to be followed by Dematerialised Linked Unitholders
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Transcript
THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
The definitions and interpretations commencing on page 5 of this Circular apply throughout this Circular, including this front cover.
• If you are in any doubt as towhat action you should take, please consult yourCSDP, Broker, banker, attorney, accountant or other professionaladvisorimmediately.
• If you havedisposedof all of your LinkedUnits, thisCircular should be handed to the purchaserof such LinkedUnits or to theCSDP, Broker,bankerorotheragentthroughwhomthedisposalwaseffected.
Investec Property Fund does not accept responsibility, and will not be held liable, for any action of, or omission by, any CSDP or Broker including, without limitation, any failure on the part of the CSDP or Broker of any beneficial owner of Linked Units to notify such beneficial owner of the details set out in this Circular.
• the replacement of each Linked Unit with one Delinked Ordinary Share by the delinking of the Linked Units and the capitalisation of the value of the Debentures in the books of account of Investec Property Fund to form part of the Fund’s stated capital account;
• the conversion of Investec Property Fund’s ordinary par value shares to ordinary shares of no par value; and
• the approval of the amendment of the Fund’s Memorandum of Incorporation;
andincorporating:
• a notice convening a General Meeting of Debenture Holders;
• a notice convening a General Meeting of Shareholders;
• a form of proxy (blue) in respect of the General Meeting of Debenture Holders (for use by Certificated and Own-name Registration Linked Unitholders only);
• a form of proxy (green) in respect of the General Meeting of Shareholders (for use by Certificated and Own-name Registration Linked Unitholders only); and
• a form of surrender (pink) in respect of the replacement of Certificated Linked Units with Certificated Shares (for use by Certificated Linked Unitholders only).
Investment Bank and Sponsor
Dateofissue:18July2013
Copies of this Circular, in English only, may be obtained from the registered office of the Fund or at the offices of the Transfer Secretaries, during normal business hours on Business Days from 18 July 2013 until 16 August 2013. The respective addresses of the Fund’s registered office and the Transfer Secretaries are set out in the “Corporate Information” section. The Circular will also be available on the Fund’s website (www.investecpropertyfund.com) from 18 July 2013.
TheGeneralMeetingofDebentureHoldersconvened intermsof thenoticetoDebentureHolders,which isattachedto and formspartof thisCircularwillbeheld in the4thFloorBoardroom, InvestecBankLimited,100GraystonDrive,Sandown,Sandton,onFriday,16August2013commencingat10:00,followingtheAGMwhichwillcommenceat09:30.
TheGeneralMeetingofShareholdersconvenedintermsofthenoticetoShareholders,whichisattachedtoandformspartof thisCircularwillbeheld in the4thFloorBoardroom, InvestecBankLimited,100GraystonDrive,Sandown,Sandton,on Friday,16August2013commencingat10:30.
FOrmS OF prOXy
if you have dematerialised your Linked units and have elected:
2.2 If you wish to attend or be represented at the General Meetings, you must advise your CSDP or Brokertimeously that you wish to attend or be represented at the General Meetings, in the manner stipulated inthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker.TheseinstructionsmustbeprovidedtoyourCSDPorBrokerbythecut-offdateandtimeadvisedbyyourCSDPorBrokerforinstructionsofthisnature.YourCSDPorBrokerwillberequiredtoissuethenecessaryletterofrepresentationtoyoutoenableyoutoattendortoberepresentedattheGeneralMeetings.
3.2 IfyouareunabletoattendtheGeneralMeetingofDebentureHoldersbutwishtoberepresentedthereat,youmustcompleteandreturntheattachedformofproxy(blue),inaccordancewiththeinstructionscontainedtherein, which is requested to be received by theTransfer Secretaries, Computershare Investor ServicesProprietaryLimited,at70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)bynolaterthan10:00onWednesday,14August2013.
3.3 IfyouareunabletoattendtheGeneralMeetingofShareholdersbutwishtoberepresentedthereat,youmustcompleteandreturntheattachedformofproxy(green),inaccordancewiththeinstructionscontainedtherein,which is requested tobe receivedby theTransfer Secretaries,Computershare InvestorServicesProprietaryLimited,at70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)bynolaterthan10:30onWednesday,14August2013.
FOrm OF SurrENdEr
1. dEmATEriALiSEd LiNKEd uNiThOLdErS
The following does not apply to Dematerialised Linked Unitholders.The accounts of such Dematerialised LinkedUnitholdersattheirCSDPorBrokerwillbeautomaticallyupdated.
2.3 If thedocumentsof title relating to theLinkedUnitsheldbyaCertificatedLinkedUnitholderhasbeen lostor destroyed, Linked Unitholders should nevertheless return a duly completed form of surrender, togetherwith an indemnity on terms satisfactory to Investec Property Fund. Investec Property Fund may, in its solediscretiondispensewiththesurrenderofsuchdocumentsoftitleuponproductionofsatisfactoryevidencethatthedocumentsoftitlehavebeenlostordestroyedanduponprovisionofanindemnityontermsacceptableto it.Unless otherwise agreed by Investec Property Fund, only indemnity forms obtained from theTransferSecretaries (availableon request)willbe regardedas suitable. InvestecPropertyFundshallbeentitled, in itsabsolutediscretion,bywayofagreementtowaivetherequirementofanindemnity.
“AGM” theAnnualGeneralMeetingofLinkedUnitholdersintheircapacityasholdersofthe ParValue Shares to be held on Friday, 16August 2013 in the 4th FloorBoardroom,InvestecBankLimited,100GraystonDrive,Sandown,Sandton,2196commencingat09:30;
“CertificatedLinkedUnits” Linked Units represented by certificates or other written documents of title,which have not been surrendered for dematerialisation in terms of therequirementsofStrate;
“CertificatedShares” Delinked Ordinary Shares represented by share certificates or other writteninstruments,which havenot been surrendered for dematerialisation in termsof therequirementsofStrate;
“CIPC” the Companies and Intellectual Property Commission established in termsof section185oftheCompaniesAct;
“Circular” this bound document, dated 18 July 2013, including the annexures hereto,the notices of the General Meetings, the forms of proxy in respect of theGeneral Meetingsandtheformofsurrender;
“CommonMonetaryArea” collectively, South Africa, the Kingdoms of Swaziland and Lesotho and theRepublicofNamibia;
“Conversion” thedelinkingoftheLinkedUnitsthroughseparationoftheParValueSharesfromtheDebenturesandthesubsequentcapitalisationofthevalueallottedtotheDebentures in thebooksof accountof theFund to formpartof theFund’sstatedcapitalaccount;
“CSDP” a person who holds in custody and administers securities or an interest insecurities and has been accepted by a central securities depository as aparticipantasdefinedinChapter1oftheFinancialMarketsAct;
“GeneralMeetingofDebentureHolders” themeetingofDebentureHolderstobeheldinthe4th Floor Boardroom, investec Bank Limited, 100 Grayston drive, Sandown, Sandton, 2196 commencing at 10:00onFriday,16August2013;
“GeneralMeetingofShareholders” the meeting of Shareholders to be held in the 4th Floor Boardroom, investec Bank Limited, 100 Grayston drive, Sandown, Sandton, 2196 commencing at 10:30onFriday,16August2013;
“JSE” JSE Limited (Registration number 2005/022939/06), a public companyincorporated in accordancewith the lawsof SouthAfrica and licensedas anexchangeundertheFinancialMarketsAct;
“LastPracticableDate” Friday,12 July2013,being the lastpracticabledateprior to the finalisationofthis Circular ;
“LinkedUnits” Investec Property Fund linked units each comprising one ParValue Share,indivisiblylinkedtooneDebenture;
“Own-nameRegistration” Dematerialised Linked Unitholders who have instructed their CSDP to holdtheirLinkedUnitsintheir“own-name”ontheuncertificatedsecuritiesregisterofInvestecPropertyFund;
“ParValueShare” the current issued ordinary shares with a par value of 1 cent each, created,allottedandissuedbytheFundintermsoftheMemorandumofIncorporation,eachbeingindivisiblylinkedtoaDebenturetoformaLinkedUnit;
“PLS” propertyloanstock;
“PUT” acollective investment inproperty, asdefined in section47of theCollectiveInvestmentSchemesControlAct,2002;
“Report” the board report required in terms of Regulation 31(7) in respect of theconversionof theParValue Shares toNoParValue Shares, a copyofwhichis attachedtothisCircularmarkedasAnnexure2;
“Strate” Strate Limited (Registration number 1998/022242/06), a public companyincorporatedinSouthAfrica,whichisaregisteredcentralsecuritiesdepositoryandwhichisresponsiblefortheelectronicsettlementsystemusedbytheJSE;
1.1 TheREITstructureisataxregimethatprovidesforthe“flow-through”ofnetpropertyincomefromaREITonapre-taxbasis to investors. It is themostprevalent structure for investment inproperty in internationaljurisdictionsincludingtheUnitedStatesofAmerica,Australia,theUnitedKingdom,JapanandSingapore.TheREITstructure is in linewith internationalbestpractiseandtheconversiontoagloballyunderstoodstructurewillincreasetheattractivenessoftheSouthAfricansectortoforeigninvestors.
1.2 The introduction of REITs to South Africa was enabled through the promulgation of theTaxation LawsAmendmentActandtheinclusionofsection25BB(TaxationofREITs),intheIncomeTaxAct.
1.4 For thesereasons, theBoardbelieved it tobe in thebest interestof InvestecPropertyFundtoqualifyasaREITandsubmittedanapplicationtotheJSEtobelistedasaREIT.TheapplicationincludedconfirmationsandundertakingsbytheBoardthatInvestecPropertyFundwillfullycomplywiththeamendedsection13oftheListingsRequirementspertainingtopropertyentities.PertheSENSannouncementreleasedon11June2013,LinkedUnitholderswereadvisedthattheJSEgrantedapprovaltotheFundbeinglistedasaREITontheJSEandthat,effectivefrom1April2013,theFundwillqualifyasaREITintermsoftheIncomeTaxAct.
1.6 Furthermore,intermsoftherevisedSection13oftheListingsRequirementspertainingtopropertyentities,thetotalconsolidatedIFRSliabilitiesofaREITmaynotexceed60%ofitstotalconsolidatedIFRSassets.TheListingsRequirementsandIFRSfurtherrequirethatthesubordinatedDebenturescomprisingtheDebentureportionof theLinkedUnitsbe included in thecalculationof totalconsolidated liabilities.Per thiscalculation, InvestecPropertyFundcurrentlyhasagearingratioof99.9%(includingsubordinatedDebentures)asat31March 2013.The JSE has granted IPF and the industry an extension (until 1 July 2015) to achieve compliance with thisrequirement.FollowingconversionoftheFund’scapitalstructure,theFund’sgearingratiowilldecreaseto15%at31March2013andwilltherebymeettheaforementioned60%thresholdrequirementforREITs.FailuretomeetthisrequirementbyMarch2015wouldleadtosignificantadverseimplicationsforinvestors.
1.7.2 the replacement of each Linked Unit with one Delinked Ordinary Share by the delinking of theDebentures andParValueShares and the subsequent capitalisationof thevalueof theDebenturesto theFund’sstatedcapitalaccount;
1.8 IntermsoftheListingsRequirements,inordertoretainREITstatus,theFundisrequiredtodistributeatleast75%ofitstotaldistributableprofitsasadistributionwithinsixmonthsafteritsfinancialyear-end.InvestecPropertyFundwillendeavourtocontinuetodistributeall itsprofits,therebyachievingthistargetandiscommittedtomaintaining its status as aREIT.Additionally, it is the intentionof the Fund to continue tomakedistributionpaymentsbi-annually.
2.3.2 Distributions received by non-resident Shareholders will also be deemed a Dividend, but will notbetaxedasaDividendforincometaxpurposesasitwillbeexemptintermsoftheusualDividendexemptions per section 10(1)(k) of the IncomeTaxAct.These Dividends will however be subjectto dividendwithholdingtax.
The above summary of the tax treatment of REITs does not constitute legal or tax advice and is based on promulgated taxation law and practice at the Last Practicable Date, including the 2013 draft Taxation Laws Amendment Bill published on 4 July 2013. Investors should take their own tax advice as to the consequences of their investment in the Fund.
3. dELiNKiNG OF ThE LiNKEd uNiTS, CApiTALiSATiON OF ThE dEBENTurES ANd iSSuE OF dELiNKEd OrdiNAry ShArES
Equity and liabilitiesShareholders’interest(317220000ordinaryshareswithanominalvalueof1centeach) 3172200Debentures(317220000variablerate,unsecured,subordinateddebentures) 3940004000
Totalunitholders’interest 3943176200
AFTER
At 31 march 2013 r
Equity and liabilitiesStatedcapital(317220000ordinarysharesofnoparvalue) 3943176200
3.9 TheDebentureTrusteehasbeenapproachedinconnectionwiththeConversionoftheFund’scapitalstructureasproposedandhasconsentedtothecapitalisationoftheDebenturesasbeinginthebestinterestsofDebentureHoldersaswellastheterminationoftheDebentureTrustDeed.AcopyoftheDebentureTrustee’sconsentletter is attached asAnnexure1. Following the capitalisationof theDebentures, theDebentureTrustDeedwillbeterminatedwitheffectfromthedateoftheapprovalbyDebentureHoldersofthespecialresolutionto terminatetheDebentureTrustDeed.
3.10 The JSE has agreed to amend the listing of Linked Units to make provision for the Conversion and thesubsequentlistingofaDelinkedOrdinarySharewitheffectfromMonday,16September2013underthenewISIN:ZAE000180915.TheJSEsharecodewillremainas‘IPF’.
3.12.1.3 A special resolution to approve the capitalisationof the valueof theDebentures to theFund’sstatedcapital;and
3.12.1.4 A special resolution to approve the termination of the Debenture Trust Deed andthe cancellationoftheDebentureswithoutanypaymenttoDebentureHolders.
3.12.2.2 A special resolution to approve the capitalisationof the valueof theDebentures to theFund’sstatedcapital;
3.12.2.3 A special resolution to approve the termination of the Debenture Trust Deed andthe cancellationoftheDebentureswithoutpaymenttoDebentureHolders;
4. prOCEdurE TO BE FOLLOWEd By CErTiFiCATEd LiNKEd uNiThOLdErS iN TErmS OF ThE CONvErSiON
4.1 Subjecttotheapprovalandtheregistrationofthespecial resolutionsrequired fortheConversion, itwillbenecessarytorecallLinkedUnitcertificatesand/orotherdocumentsoftitlefromCertificatedLinkedUnitholdersin order to replace themwith share certificates in respect of theDelinkedOrdinary Shares, thus reflectingInvestecPropertyFund’snewcapitalstructure.
4.2 TofacilitatethetimeousreceiptbyCertificatedLinkedUnitholdersofreplacementsharecertificates,CertificatedLinkedUnitholderswhowish toanticipate the implementationof theConversionandwhodonotwish todealintheirexistingLinkedUnitspriortotheConversion,arerequestedtosurrendertheiroriginalcertificates(copieswillnotbeaccepted)and/orotherdocumentsoftitle,undercoveroftheattachedformofsurrender(pink),totheTransferSecretaries,attheaddresssetoutinthatform,priorto12:00onFriday,20September2013.CertificatedLinkedUnitssurrenderedafterthisdatewillbereplacedwithinfiveBusinessDaysafterreceiptby theTransferSecretaries.
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4.3 Linked Unit certificates and/or other documents of title so received will be held in trust by theTransferSecretariespending theConversionbecomingunconditional.OnoraboutMonday,23September2013, theTransferSecretarieswillissuethenewsharecertificateswhichreflecttheDelinkedOrdinarySharessubstitution,totheregisteredholdersthereofbyregisteredpostattheriskofsuchLinkedUnitholders.
4.4 ShouldtheConversionbeapprovedandimplemented,CertificatedLinkedUnitholderswhohavenotalreadysurrendered their LinkedUnit certificates and/or other documents of titlewill be required to do so undertheattached formof surrenderwhichshouldbe retained for thatpurposeasno further formof surrenderwillbe circulatedtoShareholdersfollowingthepostingofthisCircular.Additionalcopiesoftheattachedformmay be requested from the offices of theTransfer Secretaries located at Ground Floor, 70 Marshall Street,Johannesburg,2001.
4.6.1 for non-residents who are emigrants from the Common Monetary Area, the replacement sharecertificatereflectingtheConversionwillbesenttotheLinkedUnitholders’authoriseddealerinforeignexchangeinSouthAfricacontrollingtheirblockedassets;and
6.3 Followingthisamendment,LinkedUnitholdersshall,asregardstheNoParValueShareshavethesamerightsandprivilegesasthosecurrentlyattachingtotheParValueShares.AstherewillbenoadverseeffectsonanyLinkedUnitholder as a consequenceof theproposed conversionof the share capital, no compensation isdeemednecessaryorcontemplated.
6.4 Asrequired in termsof theRegulations, theBoardhascausedtheReport tobeprepared inrespectof theconversionoftheFund’sequitycapitalfromParValueSharestoNoParValueShares.TheReportisattachedto thisCircularmarkedasAnnexure2.
6.5 ThecurrentMemorandumof Incorporationwillbeamendedtoallow for the issueofNoParValueShares.Theamended to theMemorandumof Incorporation requiresLinkedUnitholderapprovalbywayof specialresolutionintermsoftheCompaniesAct.
9.1 AGeneralMeetingofDebentureHolderswillbeheldonFriday,16August2013at10:00 in the4thFloorBoardroom,InvestecBankLimited,100GraystonDrive,Sandown,Sandton.
________________________ ________________________Sr Leon dAJ donald
18July2013Sandton
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ANNEXurE 1
dEBENTurE TruSTEE CONSENT LETTEr
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ANNEXurE 2
BOArd rEpOrT ON ThE CONvErSiON OF ThE OrdiNAry pAr vALuE ShArES OF ThE FuNd iNTO OrdiNAry ShArES OF NO pAr vALuE
Regulation31(7)oftheCompaniesActrequirestheboardofacompanytocauseareporttobepreparedinrespectofaproposed resolution to convert any par value shares into shares of no par value (“report”).The board of directors(“Board”) of Investec Property Fund Limited (“the Fund”) has accordingly prepared this Report in relation to theproposedconversionoftheordinarysharesinthesharecapitaloftheFundfromparvaluesharesof1(one)centeach(“par value Shares”)toordinarysharesofnoparvalue(“No par value Shares”)(“proposed Amendment”).
1.5 Given that thenumberofParValueShares (andLinkedUnits) in theFund in issueand the rights attachingtothoseParValueShares(andLinkedUnits)willbeunaffectedbytheProposedAmendment,theProposedAmendment will have no impact on the historic net asset value and tangible net asset value per share.The Proposed Amendmentwill alsohavenoeffecton thedistribution, and tax treatment thereof, thatwillbereceivedbyaUnitholder.TheProposedAmendmentshouldassuchhavenoimpactonthepriceatwhicha LinkedUnittradesontheJSE.
2. hOLdErS OF ThE FuNd’S SECuriTiES AFFECTEd By ThE prOpOSEd AmENdmENT
TheProposedAmendmentwill affect the holdersof the Fund’s LinkedUnitswho comprise the holdersof all oftheFund’sissuedParValueShares(asthesesharesareheldaspartofaninseparableportioncomprisingtheLinkedUnit)asattherecorddatetobeentitledtoattendthegeneralmeetingofshareholderstovoteontheProposedAmendmentbeingThursday,8August2013.
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3. mATEriAL EFFECTS OF ThE prOpOSEd AmENdmENT ON LiNKEd uNiThOLdErS iN ThEir CApACiTy AS hOLdErS OF pAr vALuE ShArES
In terms of Regulation 31(9) of the Regulations, a Linked Unitholder affected by the ProposedAmendment whobelievesthattheproposaldoesnotadequatelyprotecttheirrightsorotherwisefailstosatisfytherequirementsoftheCompaniesAct,mayapplytotheHighCourtforanorderandtheHighCourtmaymakeanorderthatisjustandreasonableinthecircumstances.Ifsuchanapplicationismadetoacourt,theFundmaynotputtheproposedspecialresolutiontothevoteuntilthecourtproceedingsarecompletedandthetimeforanyappealorreviewofanycourtorderhasexpired.
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ANNEXurE 3
priCE ANd TrAdiNG hiSTOry OF iNvESTEC prOpErTy FuNd ON ThE JSE
“rESOLvEd ThAT,tomakeprovisionforandtofacilitatethedelinkingofthedebenturesfromtheordinaryshareswithpar value of one cent and the capitalisation of the value of the debentures to the Fund’s stated capital, the followingamendmenttotheDebentureTrustDeedauthorisingthedelinkingandcapitalisation,beandisherebyapproved:”
Subject to a special resolution of debenture holders, the company may:
(a) delink the ordinary shares and the debentures for the purpose of the capitalisation as contemplated in (b);
(b) subsequent to the delinking as contemplated in (a), capitalise the value allotted to the debentures in the books of account of the company to form part of the company’s stated capital account; and
(c) subsequent to the capitalisation as contemplated in (b), cancel the debentures and terminate the deed, without payment to debenture holders.”
“rESOLvEd ThAT, followingandsubjecttothepassingofspecialresolutionnumber1and inordertofacilitatethecapitalisation of the value of debentures to the Fund’s stated capital, the delinking of the Fund’s par value shares anddebenturescomprisingthelinkedunitsinissuebeandisherebyapproved.”
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SpECiAL rESOLuTiON NumBEr 3:
“rESOLvEd ThAT, followingandsubject to thepassingof special resolutionsnumbered1and2, thevalueallottedtoadebentureinthebooksofaccountoftheFundwillbecapitalisedtoformpartoftheFund’sstatedcapitalaccount.”
Thereasonforandtheeffectofspecialresolutionsnumbers1,2,3and4istoapprovethedelinkingofthelinkedunitsandthecapitalisationofthevalueofthedebentureportionofthelinkedunit,toallowfortheamendmentoftheFund’sexistinglinkedunitstructure(underthepropertyloanstockregime)tobebetteralignedwiththepre-eminentcapitalstructureofinternational Real Estate InvestmentTrusts, the capital structures ofwhich are all equity, and to simplify the accountingtreatmentoftheFund’scapitalstructure.
Thedelinkingof the linkedunit and thecapitalisationof thevalueof thedebentures and the future receiptof incomedistributionswillhavenotaxconsequencesforeithertheFundoritsdebentureholders.
OrdiNAry rESOLuTiON NumBEr 1:
“rESOLvEd ThAT any director of the Fund be and are hereby authorised to do all such things and sign all suchdocuments as arenecessary to giveeffect to the special andordinary resolutionsproposedandpassedat the generalmeetingofdebentureholdersatwhichthisordinaryresolutionisproposed.”
Inordertobeadopted,eachoftheabovementionedspecialresolutionsmustbesupportedbynotlessthan75%ofthevoting rights exercised on such resolutions, with the ordinary resolution requiring more than 50% of the voting rightsexercised.
DebentureHoldersortheirproxiesmayparticipatein(butnotvoteat)theGeneralMeetingofDebentureHoldersbywayofateleconferencecall.Iftheywishtodoso,theymustcontacttheTransferSecretariesbynolaterthan10:00onWednesday,14August2013andidentifythemselvestothesatisfactionoftheFundtoobtainthedialingcodeandpinnumber.DebentureHolders participating in this manner will still have to appoint a proxy to vote on their behalf at the General Meetingof DebentureHolders.AccessbymeansofelectroniccommunicationwillbeattheexpenseoftheDebentureHolder.
prOXiES
A debenture holder entitled to attend and vote at the General meeting of debenture holdersmay appoint one or more persons as its proxy to attend, speak and vote in its stead. A proxy need not be a debenture holder of the Fund. debenture holders are referred to the attached form of proxy (blue) in this regard.
IfyouareaCertificatedLinkedUnitholderoraDematerialisedLinkedUnitholderwithOwn-nameRegistrationandareunabletoattendtheGeneralMeetingofDebentureHoldersbutwishtoberepresentedthereat,youmustcompleteandreturntheattachedformofproxy(blue)inaccordancewiththeinstructionscontainedtherein,whichisrequestedtobereceived by theTransfer Secretaries – Computershare Investor Services Proprietary Limited, at 70 Marshall Street,Johannesburg,2001(POBox61051,Marshalltown,2107)–bynotlaterthan10:00onWednesday,14 August 2013.
AdditionalformsofproxyareobtainablefromtheFund’scompanysecretaryandarerequestedtobedepositedwiththeTransferSecretariesnotlessthan48hoursbeforetheGeneralMeetingofDebentureHolders.Ifyoudonotdelivertheformofproxy to theTransferSecretariesby the relevant time,LinkedUnitholderswill neverthelessbeentitled to lodge theform ofproxywiththechairmanoftheGeneralMeetingofDebentureHoldersimmediatelypriortothecommencementofthe meeting.
Thedelinkingof the linkedunit and thecapitalisationof thevalueof thedebentures and the future receiptof incomedistributionswillhavenotaxconsequencesforeithertheFundoritslinkedunitholders.
Thereasonforandtheeffectofspecialresolutionnumber4istoamendtheMemorandumofIncorporationbyremovingthe provisions relating to the debentures and their link to the par value shares to form linked units and by insertinga provisiontoauthorisetheFundtoobtainandmaintainREITstatusandtorequiretheBoardtoensurethattheFundcomplieswiththerelevantlaws,regulationsandotherrequirementsapplicabletoaREIT.
Voting will be conducted on every resolution proposed at the General Meeting of Shareholders by way of a poll.Every ShareholdershallthereforehaveonevoteforeachParValueShareheldbyhim/her.
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ELECTrONiC pArTiCipATiON
Shareholders or their proxies may participate in (but not vote at) the General Meeting of Shareholders by way of ateleconferencecall.Iftheywishtodoso,theymustcontacttheTransferSecretariesbynolaterthan10:30onWednesday,14August2013andidentifythemselvestothesatisfactionoftheFundtoobtainthedialingcodeandpinnumber.ShareholdersparticipatinginthismannerwillstillhavetoappointaproxytovoteontheirbehalfattheGeneralMeetingofShareholders.AccessbymeansofelectroniccommunicationwillbeattheexpenseoftheShareholder.
prOXiES
A Shareholder entitled to attend and vote at the General meeting of Shareholders may appoint one or more persons as its proxy to attend, speak and vote in its stead (provided that if more than one proxy is concurrently appointed by a Shareholder, each proxy is appointed to exercise the rights attaching to different par value Shares held by that Shareholder). A proxy need not be a Shareholder of the Fund. unitholders are referred to the attached form of proxy (green) in this regard.
IfLinkedUnitholdershavedematerialisedtheirLinkedUnitswithaCSDPorBroker,otherthanwithOwn-nameRegistration,theymustarrangewiththeCSDP or Broker to provide them with the necessary letter of representation to attend the General Meeting of Debenture Holders or the LinkedUnitholdermustinstructthemastohowtheywishtovoteinthisregard.ThismustbedoneintermsoftheagreemententeredintobetweentheLinkedUnitholderandtheCSDPorBroker,inthemannerandcut-offtimestipulatedtherein.
please read the notes on the reverse hereof carefully, which, amongst other things, set out the rights of Linked unitholders in terms of section 58 of the Companies Act with regard to the appointment of proxies.
• if you wish to be represented at the General meetings, you must complete:
– this form of proxy (blue) in respect of the General meeting of debenture holders;
– the attached form of proxy (green) in respect of the General meeting of Shareholders.
Special resolution number 1(toamendtheDebentureTrustDeed)
Special resolution number 2(todelinktheParValueSharesandtheDebenturescomprisingtheLinkedUnit)
Special resolution number 3(tocapitalisethevalueoftheDebenturestoformpartoftheFund’sstatedcapitalaccount)
Special resolution number 4(toterminatetheDebentureTrustDeedandcanceltheDebentures)
Ordinary resolution number 1(anydirectoroftheFundbeandisherebyauthorisedtodoallsuchthingsandsignallsuchdocumentsasarenecessarytogiveeffecttothespecialresolutionsproposedattheGeneralMeetingofDebentureHoldersatwhichthisordinaryresolutionisproposed)
* If this form of proxy is returned without any indication of how the proxy should vote, the proxy will exercise his/her discretion both as to how he/she votes and as to whether or not he/she abstains from voting.
8. Therecorddatetobeentitledtoattend,participateinandvoteattheGeneralMeetingofDebentureHoldersbycloseoftradingonThursday,8 August 2013.This formofproxy,completed,datedandsigned in full, is requestedtobereturnedtotheTransferSecretaries,ComputershareInvestorServicesProprietaryLimitedat70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107),tobereceivedbynotlaterthan10:00onWednesday,14August2013.
13. If the instrument appointing a proxy or proxies has been delivered to Investec Property Fund, as long as that appointment remains in effect,any notice thatisrequiredbytheCompaniesActortheFund’sMemorandumofIncorporationtobedeliveredbyInvestecPropertyFundtotheLinkedUnitholdermustbedeliveredbyInvestecPropertyFundto:(i)theLinkedUnitholderor(ii)theproxyorproxies,iftheLinkedUnitholderhas directedInvestecPropertyFundinwritingtodosoandpaidanyreasonablefeechargedbyInvestecPropertyFundfordoingso.
ForusebyCertificatedLinkedUnitholdersorDematerialisedLinkedUnitholderswithOwn-nameRegistration, intheircapacityasShareholders,at the General Meeting of Shareholders to be held at 10:30 on Friday, 16 August 2013 in the 4th Floor Boardroom, Investec Bank Limited,100 Grayston Drive,Sandown,Sandton.Thedefinitionsandinterpretationscommencingonpage5oftheCirculartowhichthisformofproxyisattachedalsoapplytothisformofproxy.IfLinkedUnitholdershavedematerialisedtheirLinkedUnitswithaCSDPorBroker,otherthanwithOwn-nameRegistration,theymustarrangewiththeCSDPorBroker toprovide themwith thenecessary letterof representation toattendtheGeneralMeetingofShareholdersor theLinkedUnitholdermustinstructthemastohowtheywishtovoteinthisregard.ThismustbedoneintermsoftheagreemententeredintobetweentheLinkedUnitholderandtheCSDPorBroker,inthemannerandcut-offtimestipulatedtherein.please read the notes on the reverse hereof carefully, which, amongst other things, set out the rights of Linked unitholders in terms of section 58 of the Companies Act with regard to the appointment of proxies.if you wish to be represented at the General meetings, you must complete:• the attached form of proxy (blue) in respect of the General meeting of debenture holders; and/on• this attached form of proxy (green) in respect of the General meeting of Shareholders.For the General meeting of ShareholdersI/We(fullname/sinBLOCKLETTERS)
Special resolution number 1(todelinktheParValueSharesandtheDebenturescomprisingtheLinkedUnit)
Special resolution number 2(tocapitalisethevalueoftheDebenturestoformpartoftheFund’sstatedcapitalaccount)
Special resolution number 3(toterminatetheDebentureTrustDeedandcanceltheDebentures)
Special resolution number 4(toamendtheMemorandumofIncorporationtoremovetheprovisionsrelatingtotheDebenturesandtheirlinktotheParValueSharestoformLinkedUnitsandtoauthorisetheFundtoobtainandmaintainREITstatusbyrequiringtheBoardtoensurethattheFundcomplieswiththerelevantlaws,regulationsandotherrequirementsapplicabletoaREIT)
Special resolution number 5(toamendtheMemorandumofIncorporationtoallowfortheissueofNoParValueShares)
Special resolution number 6(toconverttheParValueSharestoNoParValueShares)
Ordinary resolution number 1(anydirectoroftheFundbeandisherebyauthorisedtodoallsuchthingsandsignallsuchdocumentsasarenecessarytogiveeffecttothespecialresolutionsproposedattheGeneralMeetingofShareholdersatwhichthisordinaryresolutionisproposed)
* If this form of proxy is returned without any indication of how the proxy should vote, the proxy will exercise his/her discretion both as to how he/she votes and as to whether or not he/she abstains from voting.
Please read the notes on the reverse hereof.
Notes:
1. ALinkedUnitholderentitledtoattendandvoteattheabovementionedmeetingisentitledtoappointoneormoreproxiestoattend,speakvoteinhis/hersteadorabstainfromvoting.TheproxyneednotbeaLinkedUnitholderofInvestecPropertyFund.ALinkedUnitholdermayappointtwo or morepersonsconcurrentlyasproxies,andmayappointmorethanoneproxytoexercisevotingrightsattachedtodifferentLinkedUnitsheldbytheLinkedUnitholder.
8. Therecorddatetobeentitledtoattend,participateinandvoteattheGeneralMeetingofShareholdersbycloseoftradingonThursday,8August2013.This formofproxy, completed,dated and signed in full, is requested tobe returned to theTransfer Secretaries,Computershare InvestorServicesProprietaryLimitedat70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107),tobereceivedbynotlaterthan10:30onWednesday,14August2013.
4. If this formof surrender is received by theTransfer Secretarieswith the relevant documents of title prior to theConversionbecomingeffective,itwillbetreatedasaconditionalsurrenderwhichismadesubjecttosuchConversionbecoming effective. Such surrendereddocumentsof titlewill be held in trust by theTransfer Secretaries until theConversionbecomeseffective. In theeventof theConversionnotbecomingeffective, for any reasonwhatsoever,theTransferSecretarieswill(withinfiveBusinessDaysaftereitherthedateuponwhichitbecomesknownthattheConversionwillnotbeabletobeimplemented,or,aftersubsequentreceiptofsurrendereddocumentsoftitle,whicheveristhelater)returntherelevantdocumentsoftitletotheLinkedUnitholdersconcerned,attheirrisk,byregisteredpost.Noreceiptswillbeissuedagainstformsreceived.
GroundFloor or POBox6176370MarshallStreet MarshalltownJohannesburg 21072001
dear Sirs,
I/We, the undersigned, being the registered holder of the number of Linked Units specified below, which are free ofencumbrances,herebysurrendertheencloseddocumentsoftitleidentifiedbelowinrespectofthesharesheldbyme/usinInvestecPropertyFund,conditionalupontheresolutionsinrespectoftheConversionbeingpassedattheGeneralMeetingsto be held on Friday, 16August 2013 (and the subsequent filing of the relevant special resolution with CIPC, to theextent required).
Postal address (preferably POBox address) towhich replacement certificate shouldbe sent, if other than the addresscontainedintheregisterofunitholders:
Postalcode
pArT A – Applicable to all Certificated Linked unitholders.
Linked unit certificate/s and/or documents of title surrendered:
Name of registered holder (separate form
for each holder)Certificate number(s) (in numerical order)
Number of Linked units covered by each
certificate For office use only
Total
pArT B – Applicable to all emigrants from and non-residents of the Common monetary Area who are recorded on the Linked unitholder register of investec property Fund.
Nominated authorised dealer in the case of a Certificated Linked unitholder who is an emigrant from or non-resident of the Common monetary Area
Oncecompleted,datedandsigned,thisForm,togetherwithdocumentsoftitlesurrendered,mustbedeliveredormailedto theTransferSecretariesatthefollowingaddresses,respectively,inanenvelopemarked“investec property Fund – Certificates of title”:
6. Where themember is a company or a close corporation, unless it has already been registeredwith theTransferSecretaries, a certified copyof thedirectors’ ormembers’ resolution authorising the signingof this Formmust besubmittedifsorequestedbytheTransferSecretaries.